ome equity represents both potential and possibilities. Many homeowners miss out on the potential
sitting on their home equity because they doubt
their ability to use that resource wisely. However,
once educated, these same hesitant investors can confront
those fears and utilize the equity in their home to make more
money and accomplish other worthwhile goals, including
security and tax savings. Many alternative investments carry
less risk than leaving equity in the home. Carrying a mortgage also allows homeowners to take advantage of a number of tax benefits. However, in order to benefit from these
opportunities, homeowners must possess a mindset that
allows them to take advantage of their resources â&#x20AC;&#x201D; a mindset that naturally leads to increased wealth and prosperity.

Overcome
Fear to Put
Home Equity
to Work
by Garrett Gunderson
with Rebecca Sato

MORTGAGEPLANNER

®

The New Reality
Financial realities have changed a lot over
the last few decades. Our grandparents’ generation viewed tapping into home equity as
a desperate measure reserved for the financially distressed. But in today’s economy,
people have come to realize that accessing
the resources trapped in the home can actually make a lot of financial sense. Indeed, when applied wisely,
home equity can create wealth just like many other resources that
often go unnoticed and underutilized.
Unfortunately, a number of false, limiting beliefs linger, holding people back from their true potential. I have exposed some of
those limiting beliefs in the book “Killing Sacred Cows.” The term
“sacred cows” refers to the limiting myths, fallacies and misguided
traditions regarding personal finance that keep people from enjoying financial freedom. Many times these show up as clichés that
promote fear or inaction due to misinformation and a lack of personal responsibility. In regards to equity repositioning you might
hear it is risky and to avoid it, but a better understanding of the true
nature of wealth proves that success isn’t based on a specific technique. Rather, wealth creation depends on how potential is effectively maximized through production. Efficient use of resources
naturally leads to greater opportunities, happiness and wealth.
Some people are hesitant to tap into their home equity simply
because they aren’t sure how to turn that equity into profit. Even if
they already understand the general reasons for managing equity,
many aren’t sure how it applies to their individual situations. For
some people, this uncertainty causes them to come up with reasons why they can’t, shouldn’t, or don’t want to explore all of their
options. They worry that leveraging home equity wouldn’t work out
well for them, even if they know it’s been a great tool for others.
So how do you overcome that fear? The first step is to take an
honest look at the reasons and concerns preventing full equity utilization. Then address these concerns through education.
As an author on financial topics with a reputation for being
straightforward, people often ask me, “Do you think this would
be a good investment?” I usually respond, “That depends. Who
are you? What do you know about it?” I don’t believe there are
risky investments. There are only risky investors. Educate yourself
so that you are not a risky investor, and you won’t have to worry
nearly as much about making risky investments.
Unfortunately, some people don’t invest in their own financial
education. They choose to “gamble” with their home equity by
simply putting the money somewhere that they hope will pay off

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without understanding it. In my opinion, that isn’t being a wise
steward over the resource of equity.

The Abundance Paradigm
A good financial advisor would never want a client to invest in
something that causes the client to worry. There has to be a marriage in every investment. First, it has to make economic sense,
and secondly it shouldn’t take away from your peace of mind. The
best investments are the investments that foster the right mindset,
which can be called the Abundance Paradigm. Scarcity is the opposite of the Abundance Paradigm. A scarcity paradigm takes over
when fear, doubt or worry dominate the decision
making process. These negative emotions create
distractions from overall happiness. A mindset
of abundance, on the other hand, allows you to
focus on opportunities.

An Educated Investment
But what is investing exactly? Investing
can go well beyond dollars. Anything that
increases the ability to produce is an investment. Personally, I take an hour each morning
to educate and better myself in every area of
life. This is an investment. It isn’t a financial
deposit with a measured rate of return, but it
is still an investment. One of the most important investments is to increase the ability to
provide value and find lasting happiness. Each
of us is our own greatest asset. When we educate ourselves, we are making a wise investment in our own future.
By discovering what makes you happy, and
what you really want out of life, you’re better
able to make wise choices with all of your assets.
Take the time to figure out what you really want
in life and how to get there — that’s the best
investment anyone can make. ■

Curtis McNeill

Certified Mortgage
Planner

Blueprint Mortgage
Planners
1420 Cypress Creek
200-191
Cedar Park TX 78613
curtis@blueprintmtg.
com
One of the greatest
compliments I can
receive is a personal
referral to one of your
friends who may
benefit from
professional mortgage